Edmunds reposted this
Shoppers looking for deals on new vehicles haven’t had much luck in the past few years due to supply chain disruptions limiting new car inventory. But as the market continues to normalize post pandemic, we’re seeing some encouraging trends make a comeback — in this case I’m referring to summer discounts on New Old Stock (NOS). According to Edmunds data from May, the share of new car inventory that is 2023MY vehicles on dealer lots nationwide climbed to 6.8%. That might not seem like much at first glance, but it does represent an increase from May 2022, when 2021MY vehicles held a 3.7% share, and is on par with what we saw pre-pandemic in May of 2019, where the share of 2018MY vehicles was 6.7%. How does this translate into savings? Edmunds data shows that 2023MY vehicles are being listed by dealers $4,147 below MSRP on average. And when financed by qualified shoppers, 2023MY vehicles are obtaining lower interest rates — more than 1 in 4 purchases of 2023MY vehicles financed at dealerships had an average APR of 1.99% or less, compared to just 4.1% of financed 2024MY vehicle purchases. But the real deals for shoppers can be found at the brand level—we took a deeper look at the share of 2023MY vehicle listings on Edmunds in May by brand and found that domestics with the greatest buildup of outgoing model year vehicles are listing some of the greatest average discounts: Dodge, Chrysler and Buick topped the list of makes with the highest concentration of 2023MY vehicle listings nationwide at 52.6%, 38.4% and 17.6%, respectively. These brands listed an average discount of $6,753, $6,252 and $4,256, respectively, for their 2023MY vehicles. Of course, consumers can’t expect these deals to be everywhere and research remains a critical piece in finding some of the best discounts. On top of that, purchasing an outgoing model year vehicle might not be the best investment for less committed car owners due to the major depreciation curve that hits these vehicles when driven off the lot compared to current model year vehicles. TL;DR there are likely more decent deals to be discovered this holiday weekend and summer than there have been in years past thanks to a surplus of outgoing model year vehicles. But YMMV, so research is key. 😎 https://lnkd.in/g9KADNj2 ]
